Doesn't mtgox already have this feature built in?
If you submit an order, it will be execute at that price, what if you want to sell if price drop a certain amount? Let's say you bought at $100, the current price is $150, but you don't want to sell it as you thingk it maybe higher. But it may not always go as you want. So you can use Coin-bot to automatically sell it if the price drops to $130 to prevent more loss.